Calgary man charged in $6M scams

Investigators have charged a man in connection with two separate scams responsible for an estimated $6 million in losses to victims.

Police said both schemes, though separate, targeted members of the city’s Asian community.

“It is a lot of word of mouth,” said Staff Sgt. Kristie Verheul of the Calgary police economic crimes unit.

“That community relationship is something that assisted (recruiting victims).”

The first case involved a Ponzi scheme, which uses money collected from new investors to pay returns to earlier investors with no actual investment taking place.

In this case, police said the suspect established a company called IC Computers and solicited loans from would-be investors.

“In return, it was promised that they would reap the benefits of the sale of electronics imported from Hong Kong and sold in the United States,” Verheul said.

The ruse was “extremely complex and sophisticated” and backed up with realistic-looking documents and literature, said Verheul.

After police launched their probe in 2010, investigators determined the only money returned to investors came from others who gave the company money — and not from electronics sales, said Verheul.

The same suspect was also allegedly at the centre of an immigration scam.

Police said the man offered would-be immigrants help on their cases, for a fee.

He is accused of collecting $700,000 over nine years — between $30,000 to $50,000 from each person — but didn’t perform any services for them.

Verheul said the investigation was started when the suspect came forward to police.

“He’s been co-operative since coming forward,” Verheul said.

It’s estimated there were 300 victims, all in the Calgary area, between the two cases. Police said there may be others who haven’t come forward.

A Calgary agency that helps newcomers adjust to life in Canada said it can be difficult for immigrants to distinguish between legitimate and bogus advice.

Although the Calgary Catholic Immigration Society doesn’t dispense advice to clients about their immigration applications, it has literature and workshops aimed at helping newcomers know what’s legal and what’s not.

“We try to educate people about business practices in Canada,” executive director Fariborz Birjandian said.

“Canada is not a country that you can pay somebody $3,000 or $5,000 and they can help you expedite your application.”

Birjandian said it’s been easier for unscrupulous operators to target newcomers since Citizenship and Immigration Canada steered all inquiries online or to its telephone call centre. CIC offices across the country see applicants by appointment only.

“I think that has added to the situation,” Birjandian said.

Authorities haven’t seized or recovered any money related to the case, but Verheul said the man has voluntarily started paying restitution.

Police have charged 38-year-old Chi-Ho Chan — also known as Moses Chan — with two counts of fraud over $5,000.

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